Introduction
In a landmark ruling, the Hon’ble High Court of Karnataka has struck down Paragraph 83 of the Employees’ Provident Fund Scheme, 1952 (‘EPF Scheme’) and Paragraph 43-A of the Employees’ Pension Scheme, 1995 (‘Pension Scheme’) framed under the Employees Provident Fund & Miscellaneous Provisions Act, 1952 (“EPF Act”), citing them as arbitrary and unconstitutional.
The court’s ruling comes in response to the long-standing concerns raised by employers and international workers regarding the financial burden imposed by uncapped provident fund (“PF”) contributions besides the challenges associated with withdrawal of accumulated PF amounts upon cessation of their employment.
Please click here to read the full article by Preetha Soman and Aishwarya Maria Manjooran.
Preetha is a labour and employment law expert, having close to ten years of experience. She has over the past decade, worked on a wide range of complex and intricate labour law matters.